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# Regression Analysis

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Regression Statistics
Multiple R 0.834
R Square 0.747
Standard Error 317.105
Significance F .00001

Coefficients Standard Error t Stat P-value Lower 95%
Intercept 10,000.0 81.72330008 0.551528 0.588449 -127.3486476
X Variable 1 -5.5 0.153318278 8.4 9.61E-06 0.627810145
a. How do I convert the above information to an equation I can use? Write out that equation using the numbers provided and the following information:
Sales (S) is the dependent variable
Advertising Expense (A) is the independent variable
b. Someone who knows statistics told me that the t value (labeled t stat in boldface above) refers to the significance of the X variable. They used a table to tell me the t value of 8.4 indicates that the X variable is statistically significant at the .05 level. What does that mean in practical terms?
c. What would this firmâ??s sales be if it didnâ??t advertise? How does one interpret that number, that is, what does it represent?
d. There is something basically wrong with the regression equation (the answer to part a), i.e. the equation describes a relationship that probably isnâ??t correct. Explain what is wrong and why?